|We were originally incorporated as S.M.S. Pharmaceuticals Pvt. Ltd.
on December 14, 1987 for the manufacture of Bulk Drugs. Mr. K G
Suggula was our original promoter of our company. We had
accumulated losses till 1990, when our current promoters viz. Mr. Ramesh
Babu Potluri and Mr. T V V S N Murthy acquired the Company. The
reason behind acquiring a loss making company was to avoid all the
regulatory formalities to be fulfilled in case of starting up a new unit.
On November 2, 1994 our company was converted to Public Limited
Company from private limited and the name was changed to S.M.S.
Pharmaceuticals Limited. Subsequently on April 12, 2004 for operational
purpose our name was changed to SMS Pharmaceuticals Limited from
S.M.S. Pharmaceuticals Limited.
We started with 20 employees as a single unit and single product Company
in 1990 and have now grown into a multi-location, multi-product Company
with 4 units and 310 employees on rolls and four Units.
In the year 1991 we started the manufacturing of bulk drug business with
the product called Ranitidine HCL at Unit I situated at IDA Khazipally, Jinnaram
Mandal, Medak District, Andhra Pradesh with a production capacity of 3 metric
tonnes per annum and the process consisting of 7 major stages. As of today the
installed manufacturing capacity has expanded to 1,440 metric tonnes per annum
and the technology has also been upgraded to a 4-stage process, which has
enabled us to become a competitive seller in the market.
We acquired a second Unit at Bachipally, Miyapur, Rangareddy District, Andhra
Pradesh in the year 2000 as part of the expansion programme, and started producing
Sumatriptan Succinate for which a non-infringing root of synthesis was developed
through in-house R&D. Currently Unit II is used to manufacture high value & Low
volume APIs like Sumatriptan Succinate, Ramipril and Quinapril.
We started a Nutraceuticals and health care division (Unit III) as a part of
diversification in the year 2003, by launching an OTC product called Fenudiet and
Hearty Salt in consumer market. Fenudiet is a product for diabetics and we have
made an application with the Trade Mark Authority to get our brand 'Fenudiet'
registered.. Subsequently we started manufacturing many other products like Alvit,
Set Free, De- Mass, and others. However, apart from Fenudiet & Hearty Salt,
manufacturing of products like Alvit, Set Free, De- Mass, and others have been
discontinued because of high overheads cost on distribution and low margins.
We have also started UNIT IV at Gagillapur (Village) Quthbullapur (Mandal Ranga
Reddy (Dist). in the year 2004 for scaling up of the APIs. This unit is to be used as
a pilot plant.
We have also expanded our R&D activities to have 4 PhDs supported
by more than 30 senior chemists. In the year 2004 we started an exclusive basic
research facility at Sanath Nagar, Hyderabad. The R&D center mainly focuses on
anti-cancer molecules, anti-migraine molecules, anti-bacterial, anti-ulcer, important
intermediates and natural plant extracts. We are also having 2 more PhDs which
are looking after our production facilities at Unit I and & Unit II.
We have filed 6 non-infringing process patents and 1 product patent under PCT and
10 process patent under Indian Patent Laws as detailed under the head Intellectual
Property in this Red Herring Prospectus. We have also filed DMFs/CoSs in US, Europe
and Canada for 4 products as listed under the head Intellectual Property mentioned
in this Red Herring Prospectus. We also started producing ACE inhibitors Ramipril,
Quinapril and anti- cancer drug Gemcitibine.
We had received in principle approvals from BSE vide letter dated December 21, 2004
and NSE vide letters dated January 11, 2005, May 31, 2005 and July 12, 2005 and had
also received the observation letter from SEBI dated May 11, 2005 for launch of an IPO
for financing the same project envisaged in this RHP. However we did not proceed
with the IPO. By the time we received the observation letter from SEBI our plans
underwent some change since we perceived better opportunity in implementing a
bigger project with larger capacities and for the manufacture of few more products. Hence
we decided not to go ahead with the IPO.
History and Major Events:
1987 .. Incorporated by Mr. K G Suggula
1988 .. Issued 49,960 equity shares at the price of Rs. 10 per share
1989 .. Issued 50,000 equity shares at the price of Rs. 10 per share
1990 .. Acquired by present promoters Mr. Ramesh Babu Potluri & Mr. T V V S N
Murthy Issued 50,000 equity shares at the price of Rs. 10 per share
1991 .. Commercial production of Ranitidine HCL with 3 MTPA at Unit I
1992 .. Ranitidine capacity increased to 180 MTPA Issues 150,000 equity shares
at the price of Rs. 10 per share
1994 .. Issued Bonus Shares in the ratio of 8:3 i.e.800,000 equity shares of Rs. 10/-
each Issues 150,000 equity shares at the price of Rs. 10 per share and 350,000
equity shares at the price of Rs. 60 per share
-- Setup of in-house R&D laboratory in Unit I
1995 .. Doubled Ranitidine capacity to 360 MTPA Issued 450,000 equity shares at the
price of Rs. 120 per share
1997 .. Increased Ranitidine capacity to 720 MTPA
1998 .. Awarded the prestigious 'Pandit Jawaharlal Nehru Silver Rolling Trophy' for its
excellence as 'Best Industrial Productivity effort in the State
1999 .. Additional APIs Naproxen, Ciprofloxacin at Unit I
2000 .. Ranitidine capacity including intermediates increased to 1,440 MTPA Acquired
plant of high value APIs at Bachupally (Unit II)
2001 .. Commercial production of Sumatriptan Succinate at Unit II
.. ISO 9001:2000 certification obtained for Unit I
.. Recognized as export house by Ministry of Commerce
2002 .. Setup of in-house R&D laboratory in Unit II
.. US DMF filed for Sumatriptan Succinate
2003 .. ISO 9001:2000 certification obtained for Unit II
.. Supply Agreement with Ranbaxy under Para IV of ANDA for
.. 4 process patents and 1 product patent filed under the Patent
.. 1 Process Patent filed for Sumatriptan Succinate under European Patents.
.. Set up of Nutraceutical plants in Unit III
2004 .. USFDA approval obtained for Unit II
.. Commenced commercial production of Ramipril and Quinapril at Unit II
.. Established exclusive basic research facility at Sanath Nagar, Hyderabad
.. US DMF for Ranitidine HCL and CoS filed for Sumatriptan Succinate and Ramipril
.. Agreement entered into with IICT, Hyderabad for development of process
know-how for Diltiazem HCL and Taxol C-13
.. Agreement entered into with IIT, Guwahati for development of process know-how
for metal acetylacetonates
.. Entered into a Memorandum of Understanding with Sochinaz SA for exclusive
development and supply of Trandolapril for global marketing by Sochinaz SA.
.. Setup of pilot plant facility for APIs at Gagilapur, Hyderabad (Unit IV)
.. 1 process patents filed under the Patent Co-operation Treaty and 2 process
patents filed with Indian Patents Office
.. Issued Bonus Shares in the ratio of 1:1 i.e.4,100,000 equity shares of Rs. 5/- each
2005 .. 8 process patents filed with Indian Patents Office
.. Commenced commercial production of Almotriptan in Unit II
.. US DMF filed for Ranitidine USP, Almotriptan and Ramipril.
.. Commencement of development of Trandolapril product under Contact Research
for a European Company Sochinaz S/A.
2006 .. Published European Patent for Sumatriptan Succinate
.. Issued 2,923,000 equity shares to the shareholders of Sreenivasa Pharma Private
Limited in exchange of shares of Sreenivasa Pharma Pvt. Limited.
.. Completion of contract research assignment of Trandolapril exclusively executed
for Sochinaz SA
.. CoS for Ranitidine HCL obtained from EDQM.
2007 .. Issued 400,000 equity shares at the price of Rs. 350 per share to Gulf
Pharmaceutical Industries, a public shareholding company having its registered
office at UAE
- SMS Pharmaceuticals Ltd has appointed Mr. N. Rajendra Prasad as Chief Financial Officer (CFO) of the Company.